A new Texas law updates the state's 1999 prompt-pay legislation and closes loopholes that hospitals said let health plans delay payments to providers. Gov. Rick Perry signed the law at the Texas Hospital Association's annual conference, being held this week in Austin. The law creates graduated penalties for health plans violating the 30-day payment deadline for electronic claims and the 45-day deadline for paper claims. It also establishes a "safe harbor" for health plans that pay 98% of claims on time and a 95-day filing deadline for providers to submit claims. -- by Mary Chris Jaklevic
Texas tightens prompt-pay law
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